option

By services, 29 July, 2018

Armour Group Limited v. Canada, 2018 FCA 134 -- summary under Contract or Option Cancellation

A bare trustee (“FSL”) for the taxpayer (an investment and real estate company) had received a ground lease of property in downtown Halifax (“Founders Square” or the “Property”) from the Province (until 2064 at $100,000 per year for the first 10 years, and percentage rent thereafter) and with FSL leasing a building it had constructed on its leased interest to the Province.

7 March 2016 External T.I. 2015-0608211E5 - Assignment of right to purchase -- summary under Paragraph (f)

Would an assignment to a trust by a non-resident person of a right to purchase a Canadian apartment unit be considered a disposition of taxable Canadian property? CRA responded:

According to Black's Law Dictionary 9th Ed, “option” includes the right to buy an asset at a fixed price within a specified time. Based on this definition, the right to purchase an apartment should be considered an option for purposes of the Act.

By services, 28 November, 2015

Mitsui & Co. (Canada) Ltd. v. Royal Bank of Canada, [1995] 2 SCR 187 -- summary under Subsection 49(1)

Before finding that a clause in a lease giving the lessee the unilateral right to compel the lessor to sell helicopters to the lessee at their reasonable fair market value was an "option", Major J. stated his agreement with the following list of the three principal features of an option:

option

option

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